Can late payment charges be avoided?

[david501]

 

It's a bit of a long shot to claim 3000 sheets of card (for leaflets) and a high capacity black toner was purchased mainly for personal use, so I think I will have to let that go.

 

In there first letter the solicitors warn that I risk a Late Payment Charge for each invoice in the sum of £40, £70 or £100 depending on the amount of the invoice.

 

The Act actually states these amounts, but per debt and not per invoice and their were actually 3 invoices not 2 as I previously mentioned. I cannot see where they are getting the £80, they are requesting, from.

 

Compensation arising out of late payment

(1)Once statutory interest begins to run in relation to a qualifying debt, the supplier shall be entitled to a fixed sum (in addition to the statutory interest on the debt).

(2)That sum shall be–

(a)for a debt less than £1000, the sum of £40;

(b)for a debt of £1000 or more, but less than £10,000, the sum of £70;

(c)for a debt of £10,000 or more, the sum of £100.

[F2(2A)If the reasonable costs of the supplier in recovering the debt are not met by the fixed sum, the supplier shall also be entitled to a sum equivalent to the difference between the fixed sum and those costs.

 

 

 

 

 

 

 

 

[AndyOrch]

You wont ...they make it up as they go along.....but unless or until they do actually issued a claim ..its all really irrelevant.

[david501]

I made payment as promised, but received a letter from their solicitors today demanding payment of the £80 late charge and interest within 7 days or they will issue a claim. As they send their post second class, this gives me until Friday (bank holiday?)

 

Their original letter states the late charge is £40 per invoice (there were 3 invoices), the Act states £40 per DEBT under £1,000, not per invoice.

 

How should I respond?

 

Thanks,

 

David 

[dx100uk]

they'll look fools if they raise a claim for penalty fees, 

and I bet it does say WILL anything??

read it carefully

 

dx

 

[david501]

They write:

 

As stated in our letter, our client is entitled to compensation and interest pursuant to statute, and a balance of £83 remains due.

 

Payment is due within 7 days of the date of this letter,failing which we are instructed to issue a County Court Claim. This  will add additional costs which will be claimed from you.

 

Please note that you have acknowledged the debt was due by paying the principal debt, therefore, there can be no valid defence for any claim made,

 

Interestingly they then request payment be made directly to them and not the client. I wonder if their client will see any of that??

 

 

[dx100uk]

BS...see it says instructed...not WILL>

 

I can instruct my dog to sit

if it does is another matter

 

always read letters very carefully.

and you see they actually say stuff all.

 

dx

 

[david501]

I appreciate what you are both saying, but these solicitor, Flint Bishop, do seem idiots.

 

However, there is an act in place to say they can recover £40 plus interest. If they pushed it and they do seem petty enough to do so, it will triple that amount.

 

 

Edited May 6, 2020 by david501

[dx100uk]

eh?

a solicitor is not a claimant, they raise the claim FOR the claimant if the claimant tells them too.

 

there is no 'act' in place ..not sure what you mean by that.

you appear to be rather green with regard to DCA's/solicitors acting as dca's and what they can actually do..stuff and all bar write scary threat-o-grams

 

[david501]

 

This ACT, http://www.legislation.gov.uk/ukpga/1998/20/contents see section 5a.

[dx100uk]

I though it was concluded earlier by andyorch this was not actually a B2B transaction as you were a sole trader or something?

sorry on a simple phone as out doing covid deliveries till later...

dx

 

[david501]

see post 26 dx

[AndyOrch]

A Solicitor can become a claimant in its own right when claiming for costs uncured in the process of litigation...yes the above act is valid in B2B claims but I doubt they would go to such lengths and costs to claim £40.....but you never know...see if it ever transpires.

[david501]

If they do issue a claim, the fee is £35/£25 online, what can they add as their costs? 

[AndyOrch]

Nothing...... if you dont defend it and pay within time.....just the issuance /sol fee

[david501]

Sorry, I shouldn't have said "costs," how much is the solicitor's fee?

 

 

[AndyOrch]

Varies...but on that amount I would expect no more than £50 for preparing the particulars.

[david501]

Is there a set maximum for <£100?

 

[david501]

OK, reviewing things.

 

If I leave it and hope it goes away, it could be £158, made up of late payment fee/interest of £83, solicitors fee - £50, online summons fee - £25. 

 

I know you think they wouldn't be arsed for such a small amount, but they would get £133 for 10 minutes work from a poorly paid junior, for what they see as an open and shut case. 

 

If I agree to settle the corrected amount now, it would be £43

 

Sometimes you have cut your losses.

 

 

[dx100uk]

you are not paying anything for the original faulty cart?,

nor any penalty fees associated with anything to do with the whole debacle?

 

taking those 2 into account, what, do you owe and what have you paid?

[david501]

There were 4 invoices in total - 3 for goods I received in perfect condition and these have now been paid.

One invoice was for a faulty toner cartridge, and this after a long wait was fully credited at the end of February.

[dx100uk]

15 minutes ago, david501 said:

There were 4 invoices in total - 3 for goods I received in perfect condition and these have now been paid.

One invoice was for a faulty toner cartridge, and this after a long wait was fully credited at the end of February.

 

so if everything has been paid what do you owe?
 

[david501]

see my post 28 dx

[AndyOrch]

3 hours ago, david501 said:

There were 4 invoices in total - 3 for goods I received in perfect condition and these have now been paid.

One invoice was for a faulty toner cartridge, and this after a long wait was fully credited at the end of February.

 

Then you defend if they issue.

[david501]

dx says "they'll look fools if they raise a claim for penalty fees",

 

andyorch says "A Solicitor can become a claimant in its own right when claiming for costs uncured in the process of litigation."

 

As they are requesting direct payment rather than to their client, I tend to agree with the latter opinion.

 

The solicitors say there is no defence as I have paid the original sum, so what would my defence be?

 

1. The payment of the account had been delayed because we were awaiting a credit note and then the lockdown.

I had advised the creditor that payment would be made by the end of April, which it was.

This was emailed to them before the solicitors became involved.

 

2. The solicitors wrote to me the day before Good Friday and sending their letter second class, giving me less than 24 hours to pay it.

 

3. The solicitors misquoted tha Act saying they would charge a fee £40 per invoice, when it is £40 per debt under £1,000.

 

4. The solicitors then tried to charge £80 without any breakdown of their figures.

 

If I do leave it, rather than rattling the cage, and they do issue, as I feel they will, how will the court view my defence? 

 

[AndyOrch]

Perfectly reasonable....and disgraceful by the claimant under the current circumstances.